March 14, 2025 7:39 am
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India in Talks with US for Combat Vehicles and Fighter Jet Engine Deal

New Delhi, Feb 10 (Reuters) – India is currently in discussions with the United States for the purchase and co-production of combat vehicles, as well as finalizing a fighter jet engine deal, as Prime Minister Narendra Modi prepares to meet President Donald Trump this week.

Key Points:

  • Combat Vehicles: India and the US have been negotiating the co-production of Stryker combat vehicles made by General Dynamics, which are also used by the US Army. The plan includes acquiring a few hundred Strykers with a mounted anti-tank guided missile system, with future co-production through a state-run firm.
  • Fighter Jet Engines: Discussions are also underway to finalize a deal for co-producing fighter jet engines in India for the Indian Air Force, a deal initially agreed upon in 2023. Officials from India’s state-owned Hindustan Aeronautics Ltd (HAL) are set to meet with US officials and General Electric’s aerospace unit to finalize the deal by March.
  • Trade Talks: Modi is preparing additional tariff cuts ahead of his meeting with Trump to boost American exports to India and avoid a potential trade war. Trump has also warned of introducing new 25% tariffs on all steel and aluminium imports into the US, which could impact Indian companies.

Quote from Defence Production Secretary Sanjeev Kumar: “We certainly wish to expedite the transaction which we would like to have with the United States,” he told reporters on Feb 9, adding that such efforts were underway.

Modi’s Statement: “I look forward to meeting my friend, President Trump,” Modi said in a statement on Feb 10 before leaving for France and the US. “This visit will be an opportunity to build upon the successes of our collaboration in his first term and develop an agenda to further elevate and deepen our partnership, including in the areas of technology, trade, defence, energy, and supply chain resilience,” he added.

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